Supplementary Pension Scheme of F. Hoffmann-La Roche Ltd Pension Plan Pension Insurance and Voluntary Savings Schemes (for employees in the Pension Fund who are insured under the pension plan (Pension Insurance Scheme and Capital Savings Plan) and whose income exceeds four times the maximum pension available from the Swiss Federal Old Age and Survivors Insurance Scheme (AHV)) Effective from 1 January 2019
Translated from the original German, which is the sole legally binding version of these Rules. All references to persons apply to both genders, even where a word or expression imports the masculine gender only.
This pension plan is an integral part of the Pension Rules of the Supplementary Pension Scheme of F. Hoffmann-La Roche Ltd of 1 January 2018 and takes precedence over the Rules in case of inconsistencies. Structure of the pension plan The pension plan comprises: Pension Insurance Scheme Voluntary Savings Scheme. Accordingly, individual accounts shall be maintained for each Insured and all balances stated in the personal insurance certificate. 1. Compulsory insurance Every Employee assigned by the Employer shall be admitted to the Plan on 1 January following his 17 th birthday, provided the Employee is receiving an annual wage or salary from the Employer which is subject to compulsory contributions to the Swiss Federal Old Age and Survivors Insurance Scheme (AHV) and his wage or salary exceeds four times the maximum AHV retirement pension. Employees who have been admitted to the Plan are referred to herein as Insureds. 2. Insured income Insured income equals total income, as per Art. 14 of the Pension Rules, less an amount equal to 4 times the maximum AHV pension, up to an amount equal to 26 times the maximum AHV pension. This serves as the basis for calculating contributions, credits and make-up payments. 3. Contributions Contributions by Insureds and the Employer shall be transferred monthly to the Supplementary Pension Scheme. Contributions by Insureds and the Employer which are not required to fund retirement credits constitute expenditures for the purposes of funding liabilities for death and disability benefits, covering the costs of administering the Scheme and contributing to the Pension Guarantee Scheme (Sicherheitsfonds). Insureds are not entitled to this portion of their and the Employer s contributions on termination of employment. Where the existing insured income continues to be insured after a reduction in salary, the Insured pays the Employer s contributions on the voluntarily insured income in addition to the Insured s contributions (Art. 33a BVG). 3.1 Pension Insurance Scheme contributions Age Individual Employee Collective Employer contribution contribution in % in % 18 19 0.30 0.30 20 65 6.00 11.70 65* 70 5.00 5.00 * As of normal retirement age The contributions by Insureds which are not required to fund retirement credits shall equal 1.5% of the insured income up until age 65. 3.2 Voluntary Savings Scheme contributions (Plan Basic, Medium and High) Insureds aged 20 to 65 can choose from the following three plans on a monthly basis: Plan Basic: 0% Plan Medium: 2.85% Plan High: 5.70% The chosen contribution calculated as a percentage of the insured income as per Art. 2.1 is valid from the month after the choice of contribution is made. 4. Retirement credits 4.1 Pension Insurance Scheme retirement credits Retirement credits funded from contributions shall be credited to the personal retirement account of Insureds. Age Retirement credit in % 18 19 20 34 10.00 35 44 13.00 45 54 16.30 55 65 20.40 65* 70 10.00 * As of normal retirement age 1 January 2019 Capital Savings Plan and Voluntary Savings Scheme Roche Supplementary Pension Scheme 1
4.2 Voluntary Savings Scheme credits (Plan Basic, Medium and High) For Insureds aged 20 to 65 who make Voluntary Savings Scheme contributions, these credits as a percentage will be made to a personal Voluntary Savings account. Plan Basic: 0% Plan Medium: 2.85% Plan High: 5.70% 4.3 Additional Employer contribution on insured portions of earnings From an amount equal to 13 times the maximum AHV retirement pension, the Employer pays an additional contribution of 0.6% of these insured portions of earnings. 5. Benefits Benefits comprise: Retirement benefits Disability benefits Death benefits The level of normal benefits is stated in the personal insurance certificate. 5.1 Retirement benefits Lump-sum retirement benefits The retirement capital available at the time of retirement, including any balance of capital adjustment payment, is paid out as a lump-sum retirement benefit. Insureds may use their capital from the Pension Insurance Scheme and the Voluntary Savings Scheme or a portion of it to purchase an annuity in the Pension Fund of F. Hoffmann-La Roche Ltd at rates determined by the Board of Trustees of the Pension Fund of F. Hoffmann-La Roche Ltd. Conversion rates are set by the Board of Trustees of the Pension Fund and published for the attention of Insureds of the Supplementary Pension Scheme. Where an annuity is purchased, the Rules of the Pension Fund shall apply to survivors benefits. Where an annuity is purchased, a spouse s pension of 60% and an orphan s pension of 20% of the agreed pension shall be insured in the Pension Fund. 5.2 Disability benefits from the Pension Insurance Scheme Disability pension Entitlement to a disability pension is granted under Art. 29 of the Pension Rules. A full disability pension shall equal 5.0% of the lump-sum retirement benefit that would have been payable at the normal retirement age of 65, calculated using a base interest rate of 2.75%. Exemption from contributions From the date of entitlement, Insureds qualifying for a disability pension from the Scheme shall be exempted from paying contributions, the extent of the exemption being determined by the degree of disablement. Such exemption shall be granted for as long as the disability persists or until the Insured reaches the normal retirement age, whichever period is shorter. 5.3 Disability benefits from the Voluntary Savings Scheme and any balance of vested rights Disability lump-sum Insureds who are entitled to a full disability pension shall be eligible to have the individual balance available from the Voluntary Savings Scheme paid out in the form of a lump-sum. In the case of partial disability, the balance shall continue to attract interest and be accumulated on a pro-rata basis. 5.4 Death benefits from the Pension Insurance Scheme Surviving spouse s pension/pension for registered partner Entitlement to a spouse s pension or pension for a registered partner is granted under Art. 32 of the Pension Rules. The spouse s pension amounts to 60% of the prospective disability pension. Pension for domestic partner Entitlement to a domestic partner s pension is granted under Art. 33 of the Pension Rules. The domestic partner s pension shall be equal to the spouse s pension. Orphan s pension Entitlement to an orphan s pension is granted under Art. 34 of the Pension Rules. The orphan s pension amounts to 20% of the prospective disability pension. 2 Roche Supplementary Pension Scheme Capital Savings Plan and Voluntary Savings Scheme 1 January 2019
5.5 Death benefits from the Voluntary Savings Scheme and any balance of capital adjustment payment Lump-sum death benefits A lump-sum death benefit shall be payable when an Insured dies before reaching normal retirement age. Entitlement is granted under Art. 34a of the Pension Rules. The amount of the lump-sum death benefit shall equal the individual balance available from the Insured s Voluntary Savings Scheme account and any balance of capital adjustment payment. 6. Maximum possible make-up payments The difference between the maximum possible makeup payment (insured income u age-dependent factor) and the retirement account and Voluntary Savings account balance provides the scope for voluntary make-up payments. Statutory provisions and limitations applicable to make-up payments shall have precedence over the Pension Rules. Insureds wishing to clarify whether the self-funded portion of their contribution is deductible from taxable income must consult their tax authority. Age Make-up payment in % Total 20 0.00 21 15.70 22 31.40 23 47.10 24 62.80 25 78.50 26 94.20 27 109.90 28 125.60 29 141.30 30 157.00 31 172.70 32 188.40 33 204.10 34 219.80 35 235.50 36 254.20 37 272.90 38 291.60 39 310.30 40 329.00 41 347.70 42 366.40 43 385.10 44 403.80 45 422.50 46 444.50 47 466.50 48 488.50 49 510.50 50 532.50 51 554.50 52 576.50 53 598.50 54 620.50 55 642.50 56 668.60 57 694.70 58 720.80 59 746.90 60 773.00 61 799.10 62 825.20 63 851.30 64 877.40 65 903.50 1 January 2019 Capital Savings Plan and Voluntary Savings Scheme Roche Supplementary Pension Scheme 3